G20 Trade Restrictions Remain High, Says WTO

The WTO’s sixteenth monitoring report on Group of 20 (G20) trade measures shows that the number of trade-restrictive measures applied by G20 economies remains high, despite a slight decline against the previous period.

The recent report notes that this is of particular concern given the continuing global economic uncertainty and the WTO’s recent downward revision of its trade forecasts.

The report also emerges just U.S. trade policy is entering an uncertain era with the change in Washington decision-making.

A total of 85 new trade-restrictive measures were implemented by G20 economies during the review period (mid-May to mid-October 2016). This is an average of 17 new measures per month, down from 21 per month imposed in the previous reporting period (mid-October 2015 to mid-May 2016).

This slight decline represents a return to recent trend levels after a peak in the first half of 2016. The number of new measures remains high and the rollback of existing trade-restrictive measures continues to be slow. In addition, the rate of trade facilitating measures applied each month declined against the previous period, and remains considerably below the 2009-2015 trend.

The steady accumulation of trade-restrictive measures since the financial crisis has gradually increased the share of global trade affected by such restrictions. As of the most recent reporting period the share of world imports covered by import-restrictive measures implemented since October 2008 and still in place is 5% and the share of G20 imports covered is 6.5%.

“The continued introduction of trade-restrictive measures is a real and persistent concern.  Tangible evidence of G20 progress in eliminating existing measures remains elusive,” says WTO Director-General Roberto Azevêdo.

He adds that it is clear that the financial crisis has had a long tail and that the world economy remains in a precarious state.

“Many people are struggling with unemployment or low paying jobs and are concerned about broader changes in the economy,” says Azevêdo. “These concerns demand a concerted response from governments and the international community.”